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Lotte Shopping’s cinema business will be spun off into a separate company. “During a regular board meeting, the members of Lotte Shopping have approved the plan to spin off the company’s cinema business Lotte Cinema as its affiliate.” the cinema department said in a press release on June 8th, 2017. “Therefore, Lotte Cinema will develop its own business as a separated corporation from Lotte Shopping starting September 1st, this year.”

Lotte Cinema will be Lotte Shopping’s affiliate, receiving the department’s net property USD 207.47 million as a business. The new affiliate will be composed of the major theater chain Lotte Cinema and film distributor and investor Lotte Entertainment. Lotte Cinema currently operates 112 theaters nationwide as well as 42 overseas while Lotte Entertainment distributes about ten Korean films a year in addition to handling Korean market releases of films from Paramount Pictures. Lotte Cinema generated over USD 524.5 million in sales and USD 35.0 million in business profits last year, accounting for 2.66% of the total amount of assets and 3.9% of the total sales for Lotte Shopping.

“Lotte Cinema will establish our brand image as an independent corporation through this arrangement to boost business competitiveness and accelerate making inroads into the global market.” an official said. In addition, the new division also plans to invest in musicals and concerts. It will also specialize in operating new businesses related to theatrical and cinema content from around the Southeast Asia region including China and Vietnam.